Attorney Giovanna Bernal was one of the authors on the International Tax chapter of the American Bar Association (ABA)’s Year In Review, The Year in Review- An Annual Publication of the ABA/Section of International Law: International Tax, on international tax developments on cryptocurrencies in Panama. Other authors reported on the United States, Canada, Cayman Islands, European Union, and the Netherlands.
Although Panama has implemented FATCA and CRS, cryptocurrencies are not considered a financial asset subject to reporting by a financial institution, as crypto trading platforms and crypto exchanges are not considered by our domestic law a financial institution. Cryptocurrencies are seen as virtual assets not regulated therefore the entities that trade with cryptocurrencies are not subject to the obligation of reporting yet, unless cryptocurrencies are under the management of a deposit custodian (“crypto asset custodians”). In that case, the custodian who is considered by law a financial institution must collect and exchange financial information with the respective reportable jurisdictions.
To read the full article as published by the American Bar Association, please read it below:
